Las Vegas is heavy with hedge fund titans and their investors this week because of the Skybridge Alternatives Conference, and they were watching the Raj verdict come in like everyone on the Street.

In fact, "some hedge fund managers and investors... audibly gasped when the news flashed on TV screens" that Raj, once one of them, had been found guilty of all 14 charges against him, Reuters reported.

That was one of four reactions to the news.

There was a signifiant group of financiers who said they "had long ago written him off as one of the $2 trillion industry's 'bad apples.'"

Reuters also spoke to money managers who were convinced that the Raj trial has "indirectly impacted the industry" because now investors are asking questions they didn't ask before. (Questions about they get their information, in light of the "expert network" phase of the investigation, have probably come up too).

The broad reaction, however, was that the verdict wouldn't change much for the hedge fund world; they say the Madoff ponzi was apparently far worse for their industry, than the Galleon case.